- Ethereum creator was gifted 500 trillion SHIB during inception; he burned 410.24 trillion and donated the rest.
- They launched a Shiba Inu Burning portal where users can burn SHIB to gain burn rewards.
- SHIB has a current supply of 590 trillion.
SHIB is a popular digital currency born as the mem coin to rival Elon Musk’s favorite DogeCoin (DOGE) in August 2020. Since then, it has had a chaotic bullish run in 2021 as the fear of missing out (FOMO) caused users to buy the currency, making it reach its all-time high of $0.00002913, a 43.8 million percentage increase since its inception.
SHIB Burning Mechanism
They do not have a specific burning schedule, although, in April 2020, a Shiba Inu Burning Portal was launched, allowing SHIB holders to burn their tokens and receive burn rewards in return.
SHIB has a total supply of 589 trillion; at the time of its inception, 500 trillion was gifted to Vilatik Buterin, the creator of Ethereum. Out of which, he burned 410.24 trillion SHIB and donated the rest to a charity to an Indian COVID-19 relief fund created by Polygon co-founder Sandeep Nailwal.
Six billion SHIB were said to be burned in March, and 10 billion in April, before the portal launch on April 23, 2022.
Shiba Inu has three burning addresses, a part of the Ethereum network and used for other tokens. A burn address is not used by anyone, meaning that once a token is burned or shifted to the said wallet, it is out of circulation.
- The first address has been widely used since Vitalik, the creator of Ethereum, used it.
- The second address is used by the ShibaSwap team, a decentralized exchange (DEX).
- The third burn address is called Blackhole and is used for Shiboshi’s non-fungible tokens (NFTs)
At the time of writing, 70 billion SHIBs have been burned. Over 40% of the total supply. Buterin is said to be responsible for the maximum burning of the token. After that, he urged crypto creators to donate the coins and tokens to charity rather than gifting them to prominent people in crypto who may not have any worthwhile use for the gift.
SHIB burn Roadmap
With the portal launch, all SHIB owners can burn their assets through the remaining real estate in Shiba’s metaverse. The Shiba Inu platform, including layer-2s and decentralized exchanges like Shibarium, Shibaswap & Shibanet, will also feature a burning mechanism. NOWPayments features a burning mechanism for merchants, and SHIB panthers have used this service to burn.
Why is burning necessary?
A token’s value depends upon its utility and scarcity. Meme coin’s utility keeps dwindling with the shift in trends; Elon Musk is said to be upping DOGE to increase its utility since it has an unlimited supply. So to maintain its value, the only way is to keep it trending.
Similar is the case with SHIB; it is being burned to increase its scarcity, ultimately increasing its value.